Chequers Cafe and Wine Bar on Scott Street, in Blenheim, has been closed for good and will make way for three businesses.
Central Developments spokesman Robin Sutherland said on Friday that the company's decision to close Chequers was based on the market in the town.
"We bought Chequers and wanted to prevent it from becoming another empty retail space in Blenheim.
"To me empty shops are like a cancer, it spreads through a town," he said.
After taking a closer look at the finances of Chequers and the needs within Blenheim, the group had decided it would be best to close the cafe and divide it into three stores.
"The space is already three bays, so we will be dividing it according to that and lease it to three different businesses.
"The first segment will include the kitchen and will be turned into a roast meals takeaway. The businessmen opening this already run the same business in Christchurch very successfully."
The second segment will be set up for Blenheim hairdresser 2 Style Hair Design, which operates at 10 Arthur Street. The third segment is still under negotiation, but he hopes to have it confirmed soon.
"We will also be changing the frontage for the hairdresser and the third segment to something more appropriate to them."
They hope to have all three stores open by November 1.
"We hope this will help grow the Blenheim economy and bring a little more of the much-needed foot traffic into town," Mr Sutherland said.
Marlborough Auctions held an auction at the cafe on Saturday to sell the smaller assets like the tables and chairs, cups and glasses used in the front of house of the cafe.
Previous cafe owner Carolyn Coles-Ross sold Chequers in May after seven years and was looking forward to more family time.
- The Marlborough Express